Time is of the essence
Rushing a pay review can lead to catastrophic consequences not only for the business bottom-line, but also for employee satisfaction.
There is a fine line as to when is best to begin the pay review process.
Run your pay review too early and it could mean some of your data may be inaccurate or out of date, too late and it may mean you don’t have the time to collect the relevant data.
Creating a timeline will ensure that you have time to meet with the senior leadership team and analyse the required data.
Even for some of the leaders in your organisation, this may be the first pay review they have had to manage, so ensuring they are on board with the process and can give specifics about the available budget for employees is essential.
It is important that leaders are just as knowledgeable about the process and aware of what is expected before award decisions are made and employees communicated with.
At the end of the day, the annual pay review process is not just as simple as a slight pay increase across the board.
It is about ensuring the salary has clear, defined structures which can ensure your employees have the building blocks for growth, as well as making the salaries relevant to the roles within the market.
Once you have done the ground work required, rewarding the increases to employees is the easy part.
By Matthew Ferro, Reward Consultant at Paydata